The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 46

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3
-Refer to Figure 1- 3. Growth in the country's productive capacity is illustrated by

• A) a movement from a point inside the boundary such as C to the boundary.
• B) the movement between points on a given boundary.
• C) a point like D outside the boundary.
• D) a single point such as A on the boundary.
• E) an outward shift of the boundary, for example from PPB1 to PPB2.

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Definitions:

Wage Ratio

The comparative rate of pay for different jobs or workers, often analyzed to assess equity or disparity in employment income.

Discriminating Firms

Companies that differentiate their product or service offerings and pricing strategies to cater to different consumer segments or markets.

Production Costs

Production Costs are the expenses directly tied to the creation of goods or services, including materials, labor, and overhead costs.

Nondiscriminating Firms

Businesses that offer the same terms, conditions, and prices to all customers without any form of prejudice or favoritism.